When entering a foreign market, Mountain Stream Brewery entered into an agreement with a local firm to brew and market Mountain Stream's beer. This is an example of:

A. licensing.

B. franchising.

C. foreign direct investment.

D. foreign subsidiaries.

A. Licensing

Explanation:

-Licensing is an agreement in which a company allows another one to use its property in a specific market during a certain period of time.

-Franchising is when a company allows someone else to start a business using its ideas, concepts or processes and sell its products under the company's name.

-Foreign direct invesment is when an organization has a company in another country.

-Foreign subsidiary is when a company is part of another one that is located in a different country.

According to this, this is an example of licensing because Mountain Stream Brewery made an agreement with a local firm to allow it to sell its beer in a foreign market.